This multibagger banking stock under ₹50 surges 80% from April lows. Are you holding it?

Shareholders of South Indian Bank seem to be rejoicing as the shares have made a strong comeback in recent months following a prolonged sell-off, establishing the counter as one of 2025’s biggest turnaround stories. After hitting a one-year low in April 2025, the shares have rebounded sharply, climbing 80% since then, pushing the stock to an all-time high of ₹41.65 apiece and lifting its year-to-date return to 60%, positioning it for the largest yearly gain since 2022. If the stock ends the current calendar year higher, which appears likely, it will mark its fourth consecutive annual gain, resulting in a cumulative rise of 400%. The stock closed the Monday's trade at ₹40 apiece. For the quarter ending in September, the bank reported its highest-ever quarterly net profit of ₹351 crore, up 8% year-on-year from ₹325 crore in the same period last year. Although the bank’s net interest income (NII) came in lower, a rise in non-interest income and a sharp decline in provisions supported the bottom-line performance. The bank’s core NII fell 8% to ₹808 crore, despite a 10% growth in loans, due to a significant compression in net interest margin (NIM), which dropped to 2.80% from 3.24% a year ago. Meanwhile, non-interest income rose 26% year-on-year to ₹516 crore, helping offset the margin pressure. Provisions and contingencies declined 43% year-on-year to ₹63 crore, further supporting profit growth. The bank’s gross non-performing asset (GNPA) ratio improved to 2.93%, down from 4.40% a year ago and 3.15% in the previous quarter. The lender recorded healthy growth across all major segments—including corporate, MSME, housing, auto, and gold loans—while maintaining a strong focus on asset quality. Mutual funds boost stake in September quarter As of the end of September 2025, 10 mutual funds collectively held a 10% stake in South Indian Bank, equivalent to 26 crore shares. This marks a notable increase from the 9.55% stake held at the end of the June quarter, according to Trendlyne’s shareholding data. Mutual funds have been steadily accumulating shares of South Indian Bank over time. Some of the key funds holding stakes in the private sector lender include Bandhan Small Cap Fund, which now owns a 4.93% stake, and Kotak Multi-Cap Fund, which holds 4.28%. Foreign investors also increased their stake to 17.9% from 17.6% in Q1FY26. While both FIIs and mutual funds increased their stakes, retail shareholders reduced their ownership to 70.2% from 71.3%, yet they continue to remain the largest shareholder in the bank. Discalimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.